Iran vehicle import and electrification policies

Iran has introduced new regulations regarding vehicle imports and domestic usage. Under a program based on the 2025 budget law, the Comprehensive Trade System announced that Iranian citizens living abroad may import one passenger vehicle each through the end of 2026. This scheme allows for new models or used cars up to five years old, provided the owner held the vehicle before December 3, 2025. Import tariffs vary by engine type, with electric, range-extended, and hybrid vehicles facing a 100% tariff, while gasoline vehicles face rates ranging from 110% to 165% depending on displacement. Notably, American brands and right-hand drive vehicles are prohibited.

In a separate move toward electrification, the Ministry of Energy has mandated that management fleets within the water and electricity industry transition to electric vehicles (EVs). This initiative aims to reduce fossil fuel consumption and address fuel supply challenges. While the ministry intends for this to serve as a model for other government agencies, experts have highlighted existing obstacles to electrification in Iran, including insufficient infrastructure and a market that prioritizes luxury imports over practical public service solutions.